Momo has published its unaudited financial results for the first quarter of 2020 and has reported a decrease in net revenues.
Despite the 3.5% year-on-year fall, the Chinese social networking company’s results did exceed early estimations put forward by Yahoo Finance analysts. Total revenue was finalised at approximately $507.6 million, ahead of the $493.9 million estimations.
The decrease appears to be due to low premium subscribers. The number of paying users across the portfolio was 12.8 million, down from 14 million during the same period last year.
It’s believed that the overall impact to spending caused by the COVID-19 outbreak is the main reason for the company’s lower numbers.
Momo’s CEO and Chairman Tang Yan said in an accompanying statement: “Q1 2020 was a challenging and yet very fruitful quarter for Momo. I am proud that the team has been able to adapt well to the changing environment and navigate through the challenges with solid execution against our strategic goals.
“Despite the macro headwind, we are seeing plenty of growth opportunities ahead of us. We will continue to pursue these opportunities and drive value for our shareholders.”
On the other hand, subsidiary Tantan saw a 29.3% increase in quarterly revenues, largely thanks to its 4.2 million subscribers.
Momo’s stock price has seen a negligible increase in after hours trading and currently has a market cap of $4.41 billion.
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